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84 Cards in this Set
- Front
- Back
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Participants in construction industry |
1. Prime Contractor 2. Designer 3. Owner 4. Sub contractor 5. Vendor 6. Regulators |
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Designer |
Designs the project |
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Prime Contractor |
Firm with contract with the owner to construct the project. Provide control over the field operations. |
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Owner |
Pays for the project. Can be public or private. |
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Public owner |
Federals, state, county, or municipal govt agencies. Work within govt regulations. |
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Private owner |
Individuals, partnerships, corporations |
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Subcontractors |
Hired by prime contractor to perform a certain portion of work. |
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Segments of construction industry |
1. Industrial 2. Heavy Civil 3. Residential 4. Commercial |
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Residential |
40-45% of of new construction. Produces homes and apartments. |
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Commercial |
25-30% of new construction. Office buildings, warehouses, retail stores, shopping centers |
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Heavy Civil |
20-25% of new construction. Really heavy on earth moving equipment. Highways, Dams, tunnels, railroads |
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Industrial |
5-10% of new construction. Power plants, nuclear, petrochemical plants, processing plants |
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Contract system |
1. Lump sum 2. Unit price 3. Cost plus fee or percentage |
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Cost Plus fee or percentage |
Owner reimburses the contractor plus fee |
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Unit price contract |
Payments will be made on actual work performed, actual quantities, multiplied by the unit price. |
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Contract |
Legal agreement between 2 or more parties to perform a legal action |
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Lump sum |
Everything is complete and tell bidders are asked to submit a single price bid |
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Linear construction |
DESIGN, BID, BUILD |
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Phased construction |
Design work proceeds in an order required by Design logic or Order of Construction |
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Contract Types |
1. The Single Prime Contract 2. Separate Prime Contract 3. Design Build 4. Construction Management 5. Construction by Force Account |
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Single Prime Contract |
The GC has entered into an contractual agreement with the owner and is responsible for all construction work. |
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Separate Prime Contractors |
The contracts with several contractors at one time. |
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Design Build |
Owner purchases design and construction packages from one entity |
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Construction Management |
Owner hires someone to manage the project. Do scheduling, coordination and cost control, inspection, safety, and payments to subscribe and material suppliers |
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Construction by Force Account |
Owner acts as general contractor and builds his own project. |
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Challenges for the Construction Industry |
Economic recovery, aging infrastructure, declining tax revenues, housing bust, sustainability |
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Individual proprietorship |
Easiest and least expensive procedure for establishing and administering a business and enjoys a maximum degree of freedom from governmental regulation |
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General Partnership |
Partners are co-owner that carry on a business for mutual profit. Advantaves: concentrate assets, pool equipment, consolidate talents. |
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Dissolution of partnership |
Death of any one partner. Insanity. Bankruptcy. Mutual consent. Withdrawal of a partner. Stated duration. |
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Limited partnership |
Partner invests cash but has no control over business. Used to raise capital. |
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Corporation |
Entity created under state law that is composed of one or more persons United into one body under special name. Can: do business, own real and personal property, enter into contracts, can sue and be sued |
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Rights of individual stockhokders |
To inspect books, to sue corporation, to share declared dividends, to share in assets if corporation is dissolved, to enact by laws, to elect directors |
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Joint Venture |
Partners may be proprietors, partberships, or corporations. Used to pool management and resources. |
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Individual Licensing |
1. Graduate from ABET accredited engineering program 2. Pass FE 3. Pass PE |
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Purposes of individual licensing |
Prestige and respect, career development, authority, flexibility, and money |
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Why company organization? |
To have plan for what it wants to accomplish. 1. Mission 2. Goals 3. Purpose |
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Job Definition |
Dividing up tasks into job specialties |
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Departmentalization |
Defining common basis to grouping the jobs together into departments. |
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Span of control |
Determining appropriate size of the group reporting to a supervisor |
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Delegation of authority |
Distributes authority among employees |
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Determination of Structure of Company |
Job definiton, departmentalization, span of control, delegation of authority |
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Territorial basis |
Organize jobs based on location. Requires decentralization of power structure |
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Product basis |
Concentrate authority, responsibility, and accountability in a specific product department and allow mangers to coordinate all activities. |
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Customer basis |
Focuses company resources to address needs of certain customer |
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Project basis |
Resources assigned temporarily to a project. After completion, resources moved to another project or department. |
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Authority |
Right to act or make a decision without obtaining approval from supervisor |
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Responsibility |
The accountability for the performance of task or tasks |
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Duty |
Specifically assigned task that cannot be delegated to another |
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Selection of A/E |
Open invitation or limited invitation |
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A/E firms are asked to supply before selection? |
Info about past projects, their client list, qualifications of staff, availability of staff, specific ideas about project |
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A/E services during construction |
Project inspection, check shop drawings, approve progress payment, approve change orders, assist in selection of furnishings, interpret the contract, judge performance, power to reject defected work and stop project |
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Design process |
Schematic design Design development Final design |
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2 products of designer |
Plans/drawings and specs |
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Technical specs |
Written descriptions of materials, tests, methods, quality workmanship, operating characteristics for a project |
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Performance specs |
Describes required performance of the product. |
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Design spec |
Describes kinds and types of materials to be provided with physical property |
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Closed specifications |
Designer specifies a particular product with no substitutes allowed |
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Open Specifications |
Worded so that several products may be used |
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Requirements of a contract |
1. Offer 2. Acceptance 3. M.O.M (meeting of the minds) 4. Legality 5. Consideration 6. Capacity |
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Risk burden and contract type |
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Notice to proceed |
Sent from owner to contractor after the contract acceptance |
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Progress payments lump sale |
Is paid out of percent complete with accordance to schedule of values |
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Progress payments unit price |
By quantities approved or by stages of completion |
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Payment procedures cost plus |
Must stipulate reimbursement procedure |
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Substantial completion |
When project is sufficiently complete to be occupied and used for its purposes |
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Final completion |
Contractor completes punchline and makes final application for payment |
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Retainage |
Money withheld firm GC by owner until completion |
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Change order |
Prepared by designer with instructions from owner and approved by all parties to make a change to project. |
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Liquidated damages |
A contractually stipulated amount for breach in contract |
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Extension of time |
Excusable delay- out of control of contractor and owner Compensable delay- control of owner Nonexcusable delay- control of contractor |
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Project organization |
Company management - Project Manager - Superintendents - Crafts |
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Project manager |
Organizes plans, schedules, and controls work and is responsible for budget |
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Litigation |
Traditional dispute resolution. |
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Alternative dispute resolution |
Arbitration or mediation |
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Arbitration |
Parties at dispute pick their own forums, judges, waive all but limited rights of appeal, agree to abide by judges decision Why?: best interest to stay out of courts, litigation is expensive, trial by jury is risky for contractor |
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Mediation |
Less formal dispute. Fast, inexpensive, confidential but not binding. |
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Surety bonds |
A bond that is a guarantee made by one party (surety) that if another party (contractor) does not fulfill a responsibility to another party (owner) that surety will |
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Bid bond |
Provided with bud and guarantees that the contractor will: 1. Enter into the contract with all requirements. 2. Will pay difference between their bid and next lowest. 3. Pay a stated amount of liquidated damages. |
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Performance bond |
Guarantee that the contractor will complete the contract or the surety will |
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Payment Bond |
Guarantee to the owner that the contractor will pay workers, subs, and supplies or surety will. |
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Direct single |
Relationship that occurs between manager and subordinate |
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Direct group |
Relationship between manager and group of subordinates |
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Cross group |
Relationship that happens when subordinates interact with one another |
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Brooks act of 1972 |
An owner cannot use competitive budding to choose designer |
